Feb 10, 2010

Forex Crunch StartOptions Adjusting to the Forex Markets

Forex Crunch StartOptions Adjusting to the Forex Markets

StartOptions Adjusting to the Forex Markets

Posted: 10 Feb 2010 01:02 AM PST


Start Options, a provider of binary options now offers 24 hours of trading, thus adjusting to the forex market. Binary options are an alternative to the traditional stop loss, and this development makes them more accessible to forex traders.

Forex binary options can be used instead of the traditional stop loss in order to defend a forex trade trade against loss. Binary options were initially developed for the stock markets, providing an option to hedge positions in popular stocks such as Google.

With the rising volume in forex, some currency pairs were also added to Start Options. This was one step forward towards forex, but the limited hours meant that not all traders could use it, especially in Asia.

With this development, forex traders all over the world can now use forex binary options. There are more developments on the way. I’ll update when this materializes.

You’re welcome to check them out here.

Disclosure: I’m affiliated with Start Options.

Forex Daily Outlook – February 10th 2010

Posted: 09 Feb 2010 02:00 PM PST


We finally have a busy day today, with many important indicators, especially in Britain. GBP/USD and the Pound crosses will rock today. Let’s see what’s up for today:

The upcoming resolution of the Greek crisis sure is helping the Euro by breaking technical levels. EUR/USD is above 1.3750.

Australian Home Loans provide a powerful start for the day. They’re expected to drop by 4.8%, continuing a negative trend that began last month.

For more on the Aussie, read the AUD/USD forecast.

In Europe, French Industrial Production is predicted to rise by 0.6%, less than last month’s rise. A possible solution to the Greek crisis sure helps the Euro.

There are many events in Britain. For technical levels of GBP/USD, check out the British Pound forecast.

British Manufacturing Production is an important indicator that usually shakes the Pound. It’s predicted to rise by 0.4%, after being unchanged last month.

A bigger event is due later in Britain: Mervyn King presents the BOE Inflation Report and holds a press conference. Mervyn King usually hurts the Pound. Will he do it again?

There’s still more in Britain. The unofficial NIESR GDP estimate is known to be more accurate than economists’ expectations. They’ll publish their estimate for the three months that ended in January. After the disappointing official GDP, this will be interesting to watch.

Moving across the Atlantic, Canadian and American Trade Balance figures are published together, in an event that will shake USD/CAD. Canada’s balance is expected to show a tiny deficit, while the American deficit is predicted to remain almost unchanged at about 36 billion.

Also in the US, the Federal Budget Balance is predicted to show a smaller deficit, helping the dollar.

That’s it for today. Happy forex trading.

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.

GBP/JPY in a Tight Spot

Posted: 09 Feb 2010 07:25 AM PST


GBP/JPY made a big break downwards and is now hanging around a critical point. This volatile pair doesn’t stay too long in a narrow range. An update about the dragon.

GBP/JPY fell on Thursday from 144 to 139 in a matter of hours. Most currency pairs don’t see a 500 pip movement in a short period of time. There’s a reason why GBP/JPY is popular with action loving traders…

The Geppy fell due to risk aversion trading:

This means that the dollar and the yen strengthened across the board. The stock markets were in the red that day and fear of ongoing hardship towards recovery were looming on the world.  GBP/USD lost an important technical level, 1.5720 – this triggered more stop orders – fast downfall of the Pound. The yen enjoyed the “safe-haven” status and gained against the dollar and against everybody else.

GBP/JPY Technicals

Losing 139.05: The Geppy broke the December low of 139.24, the October low of 139.70 and April’s bottom of 139.05. Reaching 138.25, GBP/JPY was 80 pips below the critical 139.05 bottom but bounced back. A violent false break for this crazy pair.

GBP/JPY now trades just above 140 but it’s still far from the 144-150 range it traded in recent weeks. Danger still exists.

If the fall is renewed, the levels to watch for are 135.70 which was the low level at the end of March, followed by 131.70 which was bottom earlier that month. Even lower, 127 was a bottom a year ago, and this is followed by 118.90, the historic low.

Looking up, 143 is a critical line for GBP/JPY this is necessary for stabilization. If the pair rides above 146, then it will gather strength for a possible upwards move.

GBP/JPY events

No important figures are due from Japan, but Britain has a busy calendar on Wednesday, with BOE Inflation Report and the NIESR GDP estimate. Read more in the British Pound forecast.

Risk aversion or risk appetite can happen anytime but they depend mostly on the dollar’s figures, towards the end of the week, and Friday’s wild trading.

I’ll be following this exciting pair…

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.
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